NEW YORK / Dec. 20, 1999-- Ian Schrager Hotels (ISH) today announced that it has entered into a 50/50 joint venture agreement with Chodorow Ventures L.L.C (CV), operator of China Grill Management, Inc. (CGM).

The Schrager/Chodorow Restaurant Company (SCRC) will now own the restaurants in four Ian Schrager Hotels – Asia De Cuba at Morgans, Blue Door and Blue Sea at Delano, Asia De Cuba at Mondrian in Los Angeles and Asia De Cuba, Saint M and Seabar at St Martins Lane in London. The new venture will also develop restaurants in other current and future ISH, including: Sanderson in London, Henry Hudson in New York, Clift in San Francisco, and Miramar in Santa Barbara as well as stand-alone establishments. Previously, affiliates of CV were tenants of ISH, managing the various ISH restaurants where ISH had a percentage stake in those properties.

Additionally, ISH will have the option to acquire an ownership interest in other CGM operations including the highly successful China Grill and Tuscan Steak restaurants.

"I am enormously excited about this new partnership," said Schrager, Chairman and CEO of ISH. "Jeffrey is a rare breed of restaurant entrepreneurs who has the ability to create great food and lively atmosphere as well as attract a wonderful crowd and at the same time, has a tremendous business sense resulting in a profitable operation."

"Ian and I have worked together for years – successfully – and this partnership is a natural extension of our collaboration," said Chodorow, Principal of CV.

Mr. Schrager serves as chairman and chief executive officer of ISH, whose principals are NorthStar Capital Investment Corporation and Mr. Schrager. ISH was formed in February 1998 and has developed six hotels that the company owns and operates under the Ian Schrager brand: Morgans, Paramount and Royalton in New York; Delano in Miami Beach, Mondrian in Los Angeles and St Martins Lane in London. Four additional hotels, also owned and operated by ISH, are slated for redevelopment – and reinvention – also under the Ian Schrager brand. These are Empire, Barbizon in New York; Clift in San Francisco, and Miramar in Santa Barbara. In addition, the following hotels, which ISH also owns, are currently closed during the construction phase, and will reopen under the Ian Schrager brand: Sanderson in London which will open April 2000 and Henry Hudson in New York scheduled to open in fall 2000. ISH is working on a number of other property transactions that are in various stages of development.

Mr. Schrager will vigorously pursue his strategy of developing multiple properties at various price points in international gateway cities in North America and abroad. Mr. Schrager is one of the most successful and prominent figures in the lodging industry today. Since he and Steve Rubell first introduced the concept of the "boutique hotel" to the world with Morgans in 1984, Mr. Schrager has been acclaimed for creating uniquely theatrical and cutting-edge properties, each of which is characterized by a profoundly original vision and design aesthetic that captures the spirit of the times and reflects popular culture.

For the last twelve years, Jeffrey Chodorow's keen vision and gourmet expertise have been responsible for an impressive array of first-class restaurants renowned throughout the world. His China Grill Management owns and/or operates some of the most acclaimed restaurants in New York and Miami. New York's China Grill, the 'elder statesman' of Chodorow's restaurants, and Miami's China Grill, ranked among the nation's top-grossing restaurants in Restaurants & Institutions Magazine's most recent annual report, and Asia de Cuba New York joined that distinguished list for the 1999 survey. The following is a complete list of CV's and CGM's properties: Asia de Cuba at Morgans and China Grill in New York, Asia de Cuba at Mondrian in Los Angeles, Blue Door and Blue Sea at Delano, China Grill, Tuscan Steak, Red Square and The Newsroom in Miami, Rock Lobster, China Grill, Red Square and Rumjungle in Las Vegas and Light Bar, Saint M, Seabar and Asia de Cuba all at St Martins Lane in London. Tuscan Steak New York is currently under development.

Nathalie Moar/Liza Burnett, 212/685-4300 - Dan Klores Associates, Inc.